AMD posts huge loss

Best thing about Q1 is it's gone, Sanders says

As warned, AMD showed a huge loss of $128, 367,000 on turnover of $631,593,000 for its first financial quarter 1999. Revenues dropped by 20 per cent from its last quarter, when AMD managed to turn in a net profit of $22,321,000. But compared to the same quarter last year, AMD managed to show an increase in revenues of 17 per cent, when it also posted a loss. Jerry Sanders III, CEO of AMD, said: "The best thing that can be said about the first quarter is that it's over. The significant decline in revenues reported by AMD in the first quarter was almost entirely due to previously reported AMD-K6®-2 microprocessor yield issues. "The large revenue decline in the face of high fixed costs and record spending on research and development of $160 million in the quarter precipitated the unprecedented loss." Sanders claimed that improvements in in March and in the current quarter to date will mean a sharp increase in unit production in the current quarter. ®